Total net pension expense recognized over the life of a pension plan will be in excess of the total amount paid into the pension fund.

Question

Quizplus · Accepted Answer

The total net pension expense recognized over the life of a pension plan is designed to match the total benefits paid out to participants, not exceed the total amount paid into the pension fund. Pension accounting aims to allocate the cost of pensions to the periods in which the associated employee services are rendered.

Total Net Pension Expense Recognized Over the Life of a Pension